With today's more empowered, skeptical and frugal buyer, a condition we call Frugalnomics, it is imperative that sales and marketing evolve from pitching product pitches to communicating and quantifying value and ROI.
This blog is dedicated to bringing value to every customer conversation, discussing next practices in value messaging, tools and training for B2B marketing and sales.
The Frugalnomics Survival Guide book is available at: http://FrugalnomicsSurvivalGuide.com

Tuesday, June 08, 2010

IT Innovation suffering through a long recession

From PA Consulting Group, a new CIO survey confirms what many already know: one in three (74%) have been asked to reduce IT budgets and similarly (75%) have been tasked with increasing operational efficiency to deal with the recession.

Of note in the survey, 55% are not setting innovation targets. Not surprisingly, innovation is suffering in this recession as it has in past slowdowns.

Each year Alinean examines the delicate balance in IT budgets between on-going operations, migrations and upgrades, and innovative investments. From our research, in 2009 innovation and migrations / upgrades suffered as budgets fell victim to the changing economic climate:

IT Operations (keeping lights on) - 66%

Upgrades and Migrations - 23%

Innovative IT Projects - 11%

This reversed a promising trend throughout the past decade of increasing innovation spending and reduced on-going operational costs.

According to HP research, the innovation gridlock caused by the budget pressures is having a significant impact on corporate performance.

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About Me

Tom Pisello, The ROI Guy, is a Serial Entrepreneur, Author and CEO / Founder of Alinean, a developer of B2B value selling and marketing messaging, tools and training.
Tom’s value storytelling and financial justification (ROI / TCO) experience began in 1993 with his first entrepreneurial venture, Interpose, acquired by Gartner in 1998, where he served Gartner as a Managing VP.
Post Gartner, Tom has been responsible for launching and accelerating several innovative companies including Full Armor and Connotate Technologies.
Tom holds a BS Electrical Engineering from SUNY at Buffalo, and a mini-MBA from the Crummer School of Business, Rollins College.
Read his latest book on Amazon: The Frugalnomics Survival Guide - How to Use Your Unique Value to Market Better, Stand Out and Sell More (http://www.FrugalnomicsSurvivalGuide.com)